Question

Define Leakages. What kind of Leakages exists in Tourist Transport Business (Road) and how can we manage them?

29 Mar 2022
Answer :
Word Count : 767

In the context of tourism, leakages refer to the amount of money that leaves the local economy as a result of tourism-related activities. This occurs when the money spent by tourists in a particular destination does not stay within the local economy but is instead directed to external sources. Leakages can occur in various sectors of the tourism industry, including accommodation, food and beverage, transportation, and souvenir sales.In the tourist transport business (road), some common leakages include:Fuel and vehicle maintenance: The cost of fuel and vehicle maintenance is a significant leakage in the tourist transport business. Often, the fuel and maintenance costs are paid to external sources such as oil companies and mechanics, resulting in a leakage of money from the local economy.Vehicle rental fees: Many tourist transport companies rent vehicles from external sources, which results in a leakage of money from the local economy.Commission paid to third-party booking agents: Tourist transport companies _______ _____ ____ ____ _____ _____ ________.
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